Tax Abatement Programs

To help promote the building and growth of our community, the Village of Russia is part of a Community Reinvestment Area. This program is a public/private partnership intended to promote and expand conforming uses within the designated area.

As part of the program, the Village of Russia intends to undertake supporting public improvements within the village limits. Tax abatement programs are available for both industrial, commercial and residential projects within the village limits.

We encourage those who are interested in building or improving existing qualified properties to explore the tax abatement programs available within the village.

Residential Tax Abatement Program

The Village of Russia Community Reinvestment Area (CRA) Tax Abatement Program provides a benefit for residents who construct new homes or substantially improve their existing homes within the Village of Russia.

Improvements made to an existing qualified residential property with a minimum improvement of $20,000 that results in an increased property valuation may qualify for a tax abatement. If the project qualifies, the owner of a property benefits because the remodeling or substantial improvement is not charged the extra property tax for a period of five years.

The Village also offers a tax abatement to new homes constructed within the Village of Russia with a cost of construction at least $180,000 and up to $400,000. For example, new construction of containing a one or two unit residential structure may be eligible for a 5-year abatement.

The Shelby County Auditor’s Office determines the abatement amount based on the type of improvements. You will receive a letter from the Auditor’s Office after the Auditor’s appraisal has been completed. The period for tax abatement begins with the date of documented completion of work.

An increase or decrease in taxes during the abatement period may result due to changes in tax rates, state-mandated reappraisals, or updates reflecting neighborhood trends are adopted.